Ford is taking a big step in the transition to electric cars in Europe with an investment of over 600 million euros in the company's factory in Cologne. In addition, all of Ford's passenger cars in Europe will be electric cars by 2030.
Ford will offer all of its passenger cars as a minimum plug-in hybrid by 2026 in Europe. Subsequently, all European passenger cars from Ford will be fully electric by 2030. Furthermore, from 2024, Ford in Europe will be able to offer all its vans in a hybrid variant that can drive emission-free. In that regard, electric cars and plug-in hybrids are expected to account for two-thirds of Ford's van sales by 2030.
The news follows in the wake of Ford's latest result for the fourth quarter of 2020: Ford has made a profit in Europe again and invested over 1,3 billion euros in electrification worldwide. The investment, which extends through 2025, is almost twice as much as Ford had originally planned.
The 600 million euros investment in the Cologne plant will modernize the factory facilities and transform them into the centre where Ford will develop and build its first European-produced fully electric passenger car from 2023. It is also being considered whether to produce another electric car at the factory, which will be Ford's first of its kind in Europe.
The cost of Ford's European restructuring has risen to over $ 6 billion over the past 2 years. The restructuring has entailed a more targeted European modelling program and new collaborations with Google and Volkswagen.
In 2020, Ford was able to achieve its 6th year in a row as the leading van brand in Europe, and the continued leading position in the European van market has been decisive for the company's profit. The positive result follows in the wake of Ford's new vans and services. These are supported by Ford's growing collaboration with builders and not least the strategic alliance with Volkswagen.
In addition, Ford will build an ecosystem of online van services developed based on customer feedback. The services will be designed to facilitate working life and keep both the driver and the company running better with increased productivity.
The online services include FordPass Pro for fleets of up to 5 vans and Ford Fleet Management, which Ford launched last year in partnership with ALD Automotive. Ford Fleet Management increases productivity for business customers who demand more tailored fleet services. The new van services will benefit from Ford's recently announced partnership with Google, which will form the foundation for personalized driving experiences.